Happy Wednesday! This is Coffee & Crypto - the only newsletter focused on both scalding hot coffee and scalding hot crypto takes! Let’s get into it!

Espresso Shots

Big news from the day!

☕️ BNY Mellon - America’s oldest bank - became the first large bank to offer custodial services over customer’s Bitcoin & Ethereum holdings. Meaning select customers of the bank will be able to store their assets with the institution. This action comes just a year after the 238 year old bank formed a Digital Assets Unit intended to bridge the gap between traditional and digital asset custody. If you’re a big believer in decentralized finance, this might not be your favorite headline, but it’s still encouraging to see institutions of this scale eager to enter the digital asset space.

☕️ Crypto Exchange Gemini - created by Tyler & Cameron Winklevoss - is expanding across the pond. The Exchange has been focused on North America and specifically the United States since its inception. Gemini touts on its website: “Gemini is SOC 1 Type 2 and SOC 2 Type 2 compliant. We are the world’s first cryptocurrency exchange and custodian to complete these exams.” This move to Europe comes with even further firsts in authorization - this time by the Irish Central Bank. Gemini is now the first company to receive a VASP (Virtual Asset Service Provider) registration in Ireland. Let’s hope they bring some pots of gold & Irish luck to the Crypto industry.

☕️ Do you remember that awful Mark Zuckerberg Virtual Reality character? Well, after the whole internet bullied him about it, he just made a new one. And now it has legs. Seriously, this is a real headline. Is it important? No. Is it funny? Very. Check out Zuck’s new legs.

Spilling the Beans

In possibly the biggest story of the day, Bloomberg reported that the US Securities and Exchange Commission is investigating Yuga Labs - the creator of the insanely popular Bored Ape Yacht Club NFT Collection.

Bored Apes have become synonymous with NFTs themselves, owned by celebrities from Jimmy Fallon to Paris Hilton to Madonna. If the SEC is looking for somewhere to start regulating the NFT industry - it makes sense for them to start with one of the most visible projects out there.

From what we know now, it seems the SEC is investigating whether or not certain NFTs being traded based on value - should be treated as securities - so something closer to stocks than .jpegs. The investigation - which is still private - is also reportedly looking into the release of ApeCoin - a token which was dropped to holders of Bored Ape NFTs.

At the moment - Yuga Labs isn’t being formally accused of any wrongdoing and the SEC has yet to make a public statement. But Yuga Labs did give this brief statement to Bloomberg News: “It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem.”

Despite Yuga’s cooperative tone - it’s hard to not wonder exactly what the SEC might have in mind for NFT regulation. Securities in the United States are heavily regulated! So adding regulation of that scale to NFTs could prove almost impossible and could certainly have a huge impact on the industry.

We’ll keep an eye on this one for you and make sure you don’t miss a beat.

Meme of the Day

Buckle up, the SEC is coming!

The Last Sip

Have you ever wondered what it’d sound like if Joe Rogan interviewed Steve Jobs? No? Huh, ok well too bad. Here it is anyway.

This is a mind-blowing new project called podcast.ai - it’s a new weekly podcast featuring AI voices and transcripts. From their website: “Podcast.ai is a podcast that is entirely generated by artificial intelligence. Every week, we explore a new topic in depth, and listeners can suggest topics or even guests and hosts for future episodes. Whether you're a machine learning enthusiast, just want to hear your favorite topics covered in a new way or even just want to listen to voices from the past brought back to life, this is the podcast for you.”

If that sounds insane, the real thing is even more wild. The first episode is hosted by A.I. Joe Rogan and features a back-from-the-dead Steve Jobs. The A.I. voices are a bit stilted at times but the entire episode is still somehow cohesive and deeply weird. There’s a whole new way to experience the uncanny valley!

Stay caffeinated,

Coffee & Crypto Team

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.